- Decentralized administration hedge fund platform utilized by Convergence.
- 58 million CVG tokens minted and exchanged.
- The worth of the CVG token dropped by 99% from $0.12 to $0.0004 after the hack.
On Thursday, decentralized finance (DeFi) protocol Convergence suffered a severe breach, leading to a dramatic collapse of its CVG token.
This exploit concerned the creation of 58 million CVG tokens, which had been then exchanged for wrapped Ether (wETH) and crvFRAX stablecoin price roughly $200,000.
A hacker exploited a vulnerability within the Convergence codebase
Based on Web3 safety agency QuillAudits, this malicious exercise was carried out utilizing a vulnerability within the protocol's codebase.
The attacker used this flaw to mint an enormous quantity of CVG tokens after which change them for wETH and crvFRAX by Curve liquidity swimming pools. After exchanging the tokens, the attacker transformed the funds to Ether (ETH) and transferred them to Twister Money, a privateness safety instrument designed to cowl transaction tracks.
The breach resulted in an estimated $210,000 in monetary losses, whereas CVG token holders confronted a catastrophic drop in token worth.
Earlier than the assault, CVG had a completely diluted worth of $17 million. Nevertheless, the token's value has dropped by 99% in Curve's liquidity swimming pools, dropping from $0.12 to a fraction of a cent, buying and selling at $0.0004.
Frans, @Convergence_fi was simply hit by an exploit that resulted in a lack of round $210,000. 🚨
The attacker earned 58 million $CVG tokens and traded them for 60 WETH & 15.9k crvFRAX.
Worth $CVG on the time of use it was $0.1155. It has fallen 99% and is presently at $0.000413… pic.twitter.com/43MJGjQg2i
— QuillAudits ➡️ Web3 Safety 🥷🛡️ (@quillaudits_ai) August 1, 2024
Convergence asks customers to droop actions on the platform
In response to the incident, Convergence suggested customers to chorus from interacting with the protocol to keep away from additional threat.
🚨 URGENT COMMUNICATION 🚨
Convergence has been attacked. Please don’t work together with the protocol.
— Convergence (@Convergence_fi) August 1, 2024
The protocol workforce and safety specialists are presently reviewing the breach to forestall future vulnerabilities and mitigate the harm brought on by exploits.
This incident underscores the continued dangers related to DeFi protocols and the significance of sturdy safety measures in defending digital property.
